On Monday, November 17 the Central Bank of Iceland put into circulation a new 5,000 króna banknote. The version that it replaces will remain legal tender but gradually be withdrawn from circulation.

The new banknote is essentially the same as its predecessor but incorporates a number of modifications for improved security. The new note is easier to recognise and more difficult to counterfeit.

Modifications to the banknote's appearance involve replacement of the white margin on the earlier notes with all-over lithographic printing, and the addition of three visible security features: a gold foil, a new watermark and a windowed cleartext thread. A fluorescent print has been added to the design, visible only in ultraviolet light. Further security features incorporated into the note can only be detected electronically.

The original 5,000 króna note was designed by Kristín Þorkelsdóttir, who also took part in its redesign, and Stephen A. Fairbairn. It is printed by De La Rue plc of England.

Just over one million of the earlier notes are presently in circulation and it was decided to add the new security features as the time for reprinting approached. The first print run of the new version is two million notes.

A brochure describing the security features of the new 5,000 króna note and older notes will be sent to every household in Iceland. This information can also be found on the Central Bank of Iceland website (www.sedlabanki.is) along with a variety of information about Icelandic banknotes and coin, past and present.

For further information, please contact the Governors of the Central Bank of Iceland and Tryggvi Pálsson, Director of the Financial Stability Department, tel. (+354) 569 9600.

No. 26/2003

November 18, 2003